Rolls-Royce ends talks with sovereign funds ahead of 2 bln stg fund raise - FT - Metro US

Rolls-Royce ends talks with sovereign funds ahead of 2 bln stg fund raise – FT

FILE PHOTO: A man looks at Rolls Royce's Trent Engine displayed at the Singapore Airshow in Singapore

(Reuters) – Rolls-Royce Holdings Plc <RR.L> will announce its plans to raise around 2 billion pounds ($2.58 billion) from investors on Thursday, in an effort to strengthen its balance sheet, the Financial Times reported.

The British aero-engine group is planning to go ahead with the planned equity raise without the participation of sovereign wealth funds including Singapore’s GIC, according to the report https://on.ft.com/3ij9O4c.

The company had last week stated that no final decision had been made on allotting shares to potential investors, “including any sovereign wealth fund”, and it was still reviewing all available funding options.

Sky News first reported that the company had called off talks with sovereign funds in Kuwait and Singapore following opposition from existing shareholders.

The Derby-based company has been reviewing funding options for the past few months, after suffering a blow from travel restrictions linked to the COVID-19 pandemic.

It reduced at least 9,000 jobs in May, mainly in civil aviation, due to the slump in air travel and revealed its plans to sell Spanish unit ITP Aero and other assets, last month.

Rolls-Royce did not immediately respond to a Reuters request for comment.

(Reporting by Rebekah Mathew in Bengaluru; Editing by Sandra Maler)

More from our Sister Sites